penthouse

A penthouse in Sea Point, Cape Town, oozing luxury appeal. Photo: Property24

Top of the world: Luxury penthouses the perfect future-focused investment

A buyer’s market has been fuelling the demand for penthouses. We take a look at some of the country’s most luxurious offerings.

penthouse

A penthouse in Sea Point, Cape Town, oozing luxury appeal. Photo: Property24

A buyer’s market has been keeping the demand for luxury penthouses strong. Take a look inside some of the country’s most luxurious suites.

If you’ve been considering growing your property portfolio or becoming a first-time home-owner now is as good a time as any, say property experts.

Buyer’s market cycle

According to Better Bond CEO Carl Coetzee, South Africa is currently in a buyer’s market cycle. High supply makes it a good time for property investors.

“Buyer demand continues to rise in South Africa, as illustrated by a 9,7% increase in the number of home loan applications received in the 12 months to end-November 2019, with more than half being submitted by first-time buyers.”

Banks are also offering favourable interest rates, said Coetzee.

“At the same time, keen competition among the banks for new home loan business led to a 21.4% year-on-year increase in the number of new bonds being granted, and a 5.1% increase in the total value of South Africa’s outstanding home mortgages, according to the Reserve Bank.”

Penthouse ambitions for luxury buyers

For those with grand ambitions to live in style or attract top-dollar tenants, getting a penthouse apartment is a strategy that could pay off.

A segment showing considerable buoyancy in a tough economic climate, is apartment-hotels, Property24 revealed.

This recent property phenomenon gives property investors a smaller margin of risk, with penthouses specifically offering a unique investment opportunity for today’s luxury buyers. 

“As our cities and other mixed-use precincts become more densely developed, rooftop spaces are going to become increasingly valuable,” said RE/MAX of Southern Africa regional director and CEO Adrian Goslett.

Prime real estate for investors

“Penthouses are prime real estate for future-focused investors. As our cities and other mixed-use precincts become more densely developed, rooftop spaces are going to become increasingly valuable.” 

Louise Killeen of RE/MAX Living said penthouse are appealing for investors because of the levy structure. They are “usually shared between the owners and calculated in a sectional title per square metre unless otherwise stipulated”. In some instances, penthouse owners can expect a 60/40 split. 

One of the standout features of penthouses is the spectacular views they boast.

Take a look at some of South Africa’s top penthouse buys:

The panoramic view from a penthouse in Green Point, Cape Town. Photo: Property24
A penthouse in Morningside, Johannesburg. Photo: Property24